An investor purchases a $300,000$ certificate of deposit from Descartes Bank, at $2.2 \%$. How much is the investment worth (rounded to the nearest cent) at the end of 1 yr, if interest is compounded: a) annually? b) semiannually? c) quarterly? d) daily (use 365 days for 1 year)? e) hourly?
Added by Karen B.
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2% or 0.022, and the number of times interest is applied per year (N) is 1. Using the formula A = P(1 + R/N)^N, we have: A = $300,000(1 + 0.022/1)^1 A = $300,000(1.022) A = $306,600 Show more…
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